For the first quarter of 2021, Icelandair has reported a 73% drop in total revenue to US$57.3 million, on the back of a 92% decline in capacity. Icelandair’s net loss fell to $30.1 million.
The airline has reported strong cargo revenues for the quarter – up by up by 64% - stating that freight volumes exceeded pre-COVID levels.
Charter and leasing services through Loftleidir-Icelandic have also generated important revenue streams for the Group
Icelandair has total liquidity of $281.9 million.
The airline reports weak bookings for the second quarter, with restrictions still impacting many routes. It expects a moderate ramp-up from Q2, with further capacity increases expected from Q3 2021 and given the current booking status, Icelandair describes the outlook for Q4 2021 as “good”.
Following its marketing campaigns, Icelandair states that it is experiencing strong interest for travel to Iceland from the US, subsequently opening up opportunities for the VIA market as soon as Europe opens.
“Our focus on disciplined network management and tight cost control coupled with strong performance of our cargo operation has resulted in acceptable financial results given the heavy impact of the COVID-19 pandemic,” said Bogi Nils Bogason, President & CEO. “Our domestic operation is showing signs of recovery and we believe that its integration into our international operations, completed in the quarter, will result in a stronger and more streamlined airline as well as improved services to our customers.”
Bogason also commented on “great opportunities” for Iceland as a tourist destination when markets open again. “With robust infrastructure and our agile and flexible approach to route network management, we are prepared for a quick and efficient ramp-up as soon as the situation improves. In addition, our Boeing 737 MAX aircraft that we have now re-introduced into our fleet will further strengthen our route network and provide us with opportunities when it comes to efficiency, environmental performance and new markets.”